I have found special financing for those that have a short sale or foreclosure on their record. 
The basic criteria is:
- 20% Down payment.
- 42% Debt-to-income ratio.
- Three months of reserves.
- Minimum of 620 Fico score.
- Owner-occupied (no investment properties)
- If you had a bankruptcy, a minium of 12 months has to have passed since it was discharged.
- Other misc. requirements.
The interest rates are very competitive being just above a conventional loan.
Some of the requirements above may be a bit too “technical” for the average borrower; If you are unsure of the terminology, call or email me.
Disclosure: I am not a lender, I am a licensed real estate agent in Nevada, and I can refer you to the lender that has this special loan program.